Exercise $20-17($Algo$)$ Preparation of cash budgets $($for three periods$)$ LO P$2$

Kayak Company budgeted the following cash receipts $($excluding cash receipts from loans received$)$ and cash

payments $($excluding cash payments for loan principal and interest payments$)$ for the first three months of next year.

Kayak requires a minimum cash balance of $$50,000$ at each month$-$end. Loans taken to meet this requirement charge

$1\%,$ interest per month, paid at each month$-$end. The interest is computed based on the beginning balance of the loan

for the month. Any preliminary cash balance above $$50,000$ is used to repay loans at month$-$end. The company has a

cash balance of $$50,000$ and a loan balance of $$100,000$ at January $1.$

Prepare monthly cash budgets for January, February, and March. $($Negative balances and Loan repayment amounts

$($if any$)$ should be indicated with minus sign.$)$